The World Bank (WB) has completed review of National Transport Policy (NTP) and cleared its draft. The policy aims at upgradation and improvement of the current transport system with special emphasis on enhancing regional connectivity through improved links to Central Asian States, Afghanistan, India and Iran.
The policy which, according to Planning Commission (PC), is comprehensive, includes establishment of multi-modal transport system. Special emphasis is laid on enhancing private sector participation in institutional capacity-building to increase the transport sector efficiency.
The policy, which is likely to be approved by the Cabinet in June, calls for adopting an integrated and holistic approach for making the transport system more productive, efficient and reliable, which may lower costs and enhance economic benefit.
Various programmes being launched under the National Trade Corridor Improvement Programme (NTCIP) resulted in reduction of port entry charges by 15 percent at Karachi port and Port Qasim, the WB observed. These programmes also reduced port dwell times from eleven days to five days and curtailed storage time from seven days to five days.
According to WB, due to increase in daily freight express trains, on the main north-south corridor, from one to five reduced upcountry container travel time by 10 to 20 percent. Along with this, civil aviation business plan has been approved and aviation policy is in the pipeline.
According to PC, the transport sector currently accounts for 11 percent of GDP, 16 percent of the fixed investment, 35 percent of the total energy use and about 15 percent of the Public Sector Development Programme (PSDP).
The transport sector has direct and indirect linkages with all important sectors of the economy. As much as 4 percent of the GDP is lost because of inefficient and outdated infrastructure. Some officials are of the view that the NTP would play a major role in bringing the countries in Central and South Asia closer.
The basic issue will, of course, be opening up Pakistan's road and rail systems for Indian trade with Central Asian Republics (CARs), Afghanistan and Iran. Some circles are of the view that Pakistan would not open itself for India's trade with CARs and Afghanistan in accordance with aspirations of New Delhi.
However, the proposed NTP would play a major role in fulfilling the needs of Afghanistan and Iran. It will also be seen if the NTP could play a role in enhancing the China-Iran trade, via Pakistan.
Officials say that Pakistan can earn handsome amounts in transit fees. According to PC, although Pakistan has a road network of 258,000 km, the road density is low for a population of around 160 million. Pakistan Railways has about 1,000 km of tracks, but it is performing below commercial potential.